PARIS: Lactalis, the world’s largest dairy firm, said it had agreed to buy the chilled dairy business of Nestle in Malaysia in a deal worth around US$40 million (RM166 million).

Nestle Malaysia said earlier that it expected the sale to Lactalis for RM155.3 million to result in a one-time gain of about RM27 million over 2018 and 2019.

Nestle’s chilled dairy business in Malaysia generates revenues of €21 million (RM100 million), said Lactalis, which is a privately-held French company.

The deal, which will take effect next January, follows the earlier acquisition by Lactalis of the Stonyfield organic yoghurt brand from Danone and the purchase of siggi’s, a US-based maker of Icelandic yoghurt.

Lactalis was at the centre of an earlier health crisis when a salmonella outbreak at a Lactalis milk factory last year led to dozens of babies falling ill.